Mitsubishi Motors President and CEO Takao Kato announced that the company is examining options for joint manufacturing with Nissan Motor and Honda Motor to address tariff-related risks. The Japanese automaker currently imports all its vehicles from Japan, leaving it vulnerable to rising import costs.

While Mitsubishi’s US sales hit 113,000 units in fiscal year 2024, that’s only a tenth of the volume handled by Nissan and Honda individually. Kato noted that building an independent manufacturing base in the U.S. would be financially challenging given current economic conditions.

Nissan operates two assembly plants in Mississippi and Tennessee but has been facing softening demand for its vehicles. Mitsubishi’s smaller scale makes it hard to justify standalone production facilities, especially with high labor and material costs.

Joint manufacturing could help Mitsubishi reduce costs while leveraging existing infrastructure from Nissan and Honda. However, the company hasn’t disclosed specific models or U.S. plants that might be involved in any joint venture plans.

As tariffs continue to impact imported vehicles, Mitsubishi’s potential joint venture with Nissan and Honda could be crucial for its future in North America.

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Earlier this year, Kia had confirmed its intention to introduce a dedicated electric ute as part of its expanding lineup. However, recent developments have forced the company to reconsider its plans due to unpredictable tariff policies that could impact profitability and market entry strategies in the US.

Kia’s current offerings include popular models like the Niro, EV6, and EV9. These vehicles are well-received by consumers looking for eco-friendly alternatives. However, the uncertainty around tariffs has delayed the introduction of smaller electric vehicles such as the EV5 and EV3, which were expected to cater to a wider audience.

At the recent Los Angeles Motor Show, Kia America’s Vice President of Marketing, Russell Wager, expressed his concerns about the future of the EV4 sedan and an upcoming electric pick-up truck. He emphasized that until there is clarity on tariff policies in Mexico, Canada, and Seoul, these vehicles will remain on hold.

For car enthusiasts and potential buyers looking forward to more options in the electric vehicle market, this news might come as a disappointment. However, it highlights the complex challenges faced by automakers when navigating global trade regulations.

As the automotive industry continues to evolve, it’s clear that global trade policies play a significant role in shaping future vehicle offerings. While this news may be disheartening for those eagerly awaiting new models, it underscores the importance of stability and predictability in international markets.

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